Assessees entered into a memorandum of understanding dated 16-6-2007 agreeing to sell their shares in favour of two parties and received substantial part of consideration between 18-6-2007 to 16-10-2007 as advance sale consideration towards sale of shares. \u00a0The Assessing Officer held that assessees were liable to pay long-term capital gains tax on sale of shares in assessment year 2008-09. Tribunal held that since share certificates were not delivered to transferees during previous year relevant to assessment year 2008-09, assessees could not be subjected to capital gains tax in assessment year 2008-09. On appeal High Court held that \u00a0in view of settled position of law that transfer of shares shall take place only after registration by Registrar of company. Order of Tribunal is affirmed.\u00a0 Relied on \u00a0\u00a0Vasudev Ram Chandra Shelat\u00a0v.\u00a0Pranlal Jayanand Thakar\u00a0[1974] 2 SCC 323, wherein the Court held that\u00a0 a share certificate is a prima facie evidence under section 29 of the Companies Act, 1956\u00a0 of the title of a share.\u00a0\u00a0 (AY. 2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45 : Capital gains-Memorandum of understanding dated 16-6-2007 agreeing to sell their shares-Substantial consideration was received-Share certificates were not delivered to transferees-Transfer of shares shall take place only after registration by Registrar of company-Order of Tribunal deleting the addition was affirmed. [Companies Act, 1956, S. 29] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-38076","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9U8","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=38076"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38076\/revisions"}],"predecessor-version":[{"id":43106,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38076\/revisions\/43106"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=38076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=38076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=38076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}